Musk has emerged as a prominent member of Trump's inner circle. Tesla has lobbied for electric vehicle subsidies and other benefits over the years.

The Tesla CEO was named to a position in the second Trump administration on Tuesday evening. Investors don’t seem to be bothered by the idea.

More analysts are exploring what the Donald Trump-Elon Musk BFF situation means for Tesla, which has a market cap back above $1 trillion in the election's wake. What they're saying: A Deutsche Bank note titled "to the victor belong the spoils" lays out a few ways Trump 2.

Additionally, the stock pulled back earlier in the session on the Cybertruck recall and as the boom from Trump's victory and the broader "Trump trade" seemed to unwind. Tesla stock had soared in the days following the election, primarily due to CEO Elon Musk's alliance with Trump, though it's not fully clear how that will benefit Tesla.

Tesla shares fell as much as 7% Tuesday, retreating from their earlier gains as a face of the “Trump trade.” Tesla, recently down about 6.3% on the day, was one of the S&P 500’s biggest gainers in the days after the presidential election was called.